{"id":9060,"date":"2009-12-16T19:06:58","date_gmt":"2009-12-16T23:06:58","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=9060"},"modified":"2009-12-16T19:06:58","modified_gmt":"2009-12-16T23:06:58","slug":"bigprb-downgraded-by-dbrs-as-expected","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=9060","title":{"rendered":"BIG.PR.B Downgraded by DBRS (as expected)"},"content":{"rendered":"<p>DBRS <a href=\"http:\/\/www.dbrs.com\/research\/230938\/big-8-split-inc\/dbrs-downgrades-big-8-split-inc-class-b-preferred-shares-series-1-to-pfd-2.html\">has announced<\/a> that it:<\/p>\n<blockquote><p>has today downgraded the rating of the Class B Preferred Shares, Series 1 (the Class B Preferred Shares) issued by Big 8 Split Inc. (the Company) to Pfd-2 from Pfd-2 (high). This action removes the rating from Under Review with Negative Implications, where it was placed on October 29, 2009. The Class B Preferred Shares have been downgraded as a result of a re-leveraging of the Company. Prior to the re-leveraging, there were 1,067,005 Class B Preferred Shares and an equal number of Class A Capital Shares (the Capital Shares) outstanding. The Company declared and paid a dividend in Capital Shares to the current holders of the Capital Shares (0.6 Capital Shares for each Capital Share outstanding). The Company subsequently issued 1,165,203 new Class C Preferred Shares at $12 each and 525,000 additional Capital Shares at $20 each through a public offering. A greater number of Class C Preferred Shares were issued so that an equal number of Capital Shares and Preferred Shares of the Company would remain outstanding following the Capital Share dividend payment. The Class C Preferred Shares rank pari passu with the Class B Preferred Shares with respect to return of principal and payment of dividends.<br \/><b>&#8230;<\/b><br \/>Since the Class B Preferred Shares rank equal with the newly issued Class C Preferred Shares, all Preferred Shares of the Company will benefit from the same amount of downside protection. Following the completion of the re-leveraging, the downside protection available to the Preferred Shares has decreased from 71% to approximately 60% (after offering expenses). The rating on the Class B Preferred Shares has been downgraded to Pfd-2 to reflect the lower amount of downside protection available.<\/p>\n<p>The scheduled final maturity date of the Class B Preferred Shares is December 15, 2013.<\/p><\/blockquote>\n<p>The intent to downgrade BIG.PR.B was <a href=\"http:\/\/www.prefblog.com\/?p=8423\">discussed on PrefBlog<\/a>.<\/p>\n<p>Neither BIG.PR.B nor BIG.PR.C are tracked by HIMIPref&trade;.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>DBRS has announced that it: has today downgraded the rating of the Class B Preferred Shares, Series 1 (the Class B Preferred Shares) issued by Big 8 Split Inc. (the Company) to Pfd-2 from Pfd-2 &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-9060","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/9060","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9060"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/9060\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9060"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9060"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9060"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}